TEL closes higher for the 3rd day in a row
TE Connectivity Ltd. New Switzerland Registered Shares (TEL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TEL finished Thursday at 68.20 gaining $4.71 (7.42%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 67.39, TE Connectivity confirmed its breakout through the previous session high after trading up to $1.06 above it intraday.
Daily Candlestick Chart (TEL as at Mar 26, 2020):
Thursday's trading range has been $5.42 (8.52%), that's slightly below the last trading month's daily average range of $5.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for TEL.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, TEL gained 4.84% on the following trading day.
Buyers managed to take out the key technical resistance level at 65.10 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 72.01 (R1).
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for TE Connectivity. Out of 376 times, TEL closed higher 52.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.57% with an average market move of 0.83%.